US drug dealers seem extremely interested in accumulating a colossal crowd of investors in the marijuana industry due to the industry’s capacity to push revenues to new heights.
Cowen Inc. estimated that the marijuana industry will count itself among the $80 billion industries because 23 US states have legalized medical marijuana. Out of which, 10 states have legalized recreational marijuana as well.
Growth of the marijuana industry will pave the way for the growth of some other industries as well. These include energy, packaging and others who will be involved in the production and sale of marijuana products. A few of them are already showing a keen interest.
According to Chart Industries’ statement on February 14, cannabis is so profit-oriented that it can show double-digit growth results due to the increasing use of liquefied carbon dioxide in marijuana extraction. On February 13, Point of Sale Company Socket Mobile said marijuana dispensaries can aid the point-of-sale solutions, for regulatory and accounting compliance. Also, Private Security Brinks Company, on February 06, mentioned that the USA will see one more profitable year due to a hike in the marijuana industry.
The portfolio manager of Needham Growth Fund, Chris Retzler, said that the increase in the supply chain of cannabis will cause other adjacent companies will grow simultaneously giving amazing results.
Commendable Hike
In recent years, the Scotts Miracle-Gro company has become an important branch of the cannabis industry. The company has transformed many of its systems as per the cannabis industry needs like sales of fertilizer, lighting, etc. Hence, many other industries are trying to copy its business plan.
For the remaining marijuana plants, revenue calculation remains vague.
Analysts suggest there will be double-digit revenues for supply chain companies of cannabis but are still wary of the levels. People involved in the making of shovels and picks, for the gold miners, will benefit the most.
Chart industry has unveiled its various marijuana-oriented products used in the cannabis industries. And this section of the Chart is the most profitable one, says Jillian Evanko, Chart’s chief executive.
She says initially he company did not focus on it but now they have both technical & commercial teams for this market.
The Unveiling of the Secret
A Seaport Global analyst, Brett Hundley said that the voluminous crowd of investors in marijuana and its growing popularity as an important drug will encourage more companies to have open discussions about their cannabis-related products.
A few like Constellation Brands (alcohol beverage company) & Altria Group (Tobacco company) are highly investing in hashish to give a strong challenge to their competitors. While other companies are discussing cannabis to change the long-drawn perception towards marijuana, Brett said.
Brett explained how he saw a 2% instant hike in the stocks of Balchem company after they had a conference call on marijuana. He asked the company if they are looking forward to including marijuana. The CEO of the company said they are supplying it. So, any cannabis-related products and companies are earning good profits.
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